December inflation data release: The CPI data for December came in on the expected lines, with inflation rising by 6.5%. The US Bureau of Labor Statistics released the Consumer Price Index (CPI) data for December. The crypto market was slightly on the bullish side with most assets in green in the minutes leading to the data release. The CPI index for the month of November stood at 7.10%.
As of writing, the Bitcoin (BTC) price stands at $18221.71, up 4.61% in the last 24 hours, according to CoinGape price tracker. However, in the last one hour, BTC price is down by around 0.31%, after initially showing a price spike immediately after the data release. Similarly, the Ethereum (ETH) price is down by just 0.16% in reaction to the CPI inflation data release. However, the stock markets are upbeat with the news of inflation cooling down. Reacting to this, the Nasdaq Composite Index is up by 1.76% today.
Good For Crypto Market In Long Term
The Consumer Price Index is a key indicator that measures price change over a period of time. The index data is used by the US Fed to decide the rate of interest rise. The decrease in inflation is important for the economy in many fronts. The 6.50% year-on-year inflation rise is the lowest such rise in the US since October 2021. Although the crypto market had a knee jerk reaction of price decline to the CPI data, the co0ling down of inflation could be beneficial from traders’ perspective.
Lowering inflation means that the average crypto trader has to spend lesser expenses for living costs. Hence, this means the traders will be able to save money for potential investment options like crypto.
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